What represents the total amount of credit lines available compared to how much is used?

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18-08-2022
Social Studies

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What represents the total amount of credit lines available compared to how much is used?

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vtamit3 vtamit3 · Answer 1 · 2022-08-25T13:51:24+02:00

The presentation of the total amount of credit lines available in comparison to that are being used is done by the credit usage ratio. Hence, Option A is correct.

What is credit?

Credit is a kind of financial power that helps to get the things that one needs and the payment related to the thing is made later. When a person purchases anything on the basis of credit, they have to pay interest also.

Identifying the limit that one has for credit in comparison to the used is done with the help of the ratio. While calculating it one has to follow a few steps.

Thus, Option A is correct.